New research hints that major egg companies might be exploiting avian flu to raise egg prices, resulting in big profits while hurting American shoppers.
In January, the cost of a dozen large eggs surged to nearly $5, a record high for the U.S. This price is more than 2.5 times the average from three years ago. That’s an astonishing 157% increase, making eggs less accessible for many families who once relied on them as an affordable protein source.
Though avian flu is a significant factor behind rising egg prices, a new analysis from Food and Water Watch (FWW) points to the concentrated egg market as another culprit. “Bird flu doesn’t fully account for the shock consumers feel at the store. Corporate consolidation plays a major role in these price hikes,” said Amanda Starbuck, the report’s lead author.
Starbuck explains that big corporations control every part of the egg supply chain, from breeding hens to selling eggs. They are profiting from the crisis by raising prices more than necessary to cover any rising costs.
Interestingly, prices started rising in some areas before the new avian flu strain impacted local flocks. For instance, the Southeast had no bird flu in its egg production until January 2025, yet prices were already climbing. In fact, egg production in the region increased compared to the previous years, but retail prices kept pace with the national trends.
Even as egg production bounced back in 2023, prices remained high. Between April and December, national egg inventories were up by nearly 13% compared to the five-year average, but consumers still faced higher prices than usual.
One of the biggest egg producers, Cal-Maine, saw its profits soar by seven times in fiscal 2023 compared to 2021, despite having no bird flu issues in its flocks. They handed out $250 million in shareholder dividends for that year, which was 40 times more than in the previous year.
While the overall prices have risen by 61% in the last six months, studies indicate that avian flu-related costs could account for only a 12-24% increase in retail prices. Other factors, like industry changes, could also be contributing to higher costs.
Critics, including Democratic Congressman Ro Khanna, argue that everyday Americans are struggling with grocery bills while companies like Cal-Maine are reaping significant profits. Khanna mentions that the current administration could do more to reduce food prices instead of imposing tariffs and making budget cuts that hurt public health efforts against avian flu.
Since early 2022, about 166 million poultry have been culled due to the virus. In January 2025, there were 9% fewer egg-laying hens compared to three years earlier. Most avian flu outbreaks have occurred in large factory farms, where crowded conditions can quickly spread disease.
A recent outbreak in Ohio led to the culling of nearly 3.1 million hens. If one hen from a flock gets infected, federal regulations require the entire flock to be eliminated to prevent further spread of the virus.
Currently, there have been 70 confirmed human cases of avian flu in the U.S., leading to one death and several hospitalizations, along with infections in cattle herds. More than 54 million birds have been affected recently.
The egg industry is heavily concentrated, which allows a few corporations to influence prices beyond the impacts of outbreaks or supply shortages. The top five egg companies own nearly half of all commercial egg-laying hens, with Cal-Maine alone representing a significant share of the market.
Cal-Maine, even without bird flu issues, sold eggs at inflated prices—2.8 times higher than in 2021. This led the company to report over $1 billion in profits, even while claiming it lacks control over egg prices sold at retail.
Concerns have led to calls for federal investigations into possible collusion among egg producers to keep prices high. Analysts have noted that production of eggs has not ramped up as expected, despite high prices and the substantial loss of hen flocks due to avian flu.
While some experts argue that current market dynamics naturally lead to Cal-Maine’s profitability, others believe that more scrutiny is needed to understand the rising prices clearly. Families across the U.S. remain anxious about food costs, particularly as egg prices continue to climb.
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